This policy theme includes our work on wages, good work employment, welfare, worklessness, pay, outsourcing and skills. We recently undertook a major inquiry into making undertaken by Ed Sweeney (former chair of ACAS) into Making Work Better. This report was widely welcomed including support from the Labour party, unions and the EEF.

Our future work programme is going to focus on procurement, living wage, employment protection and will focus on some of the main themes from the Making Work Better report. To get involved or support a project please get in touch.

Making work better: an agenda for governmentIn this major Smith Institute report, Ed Sweeney, the former chair of the Advisory Conciliation and Arbitration Service (ACAS), shows that Britain has too many poor performing workplaces where employees are often badly treated, underpaid, over-worked and ignored. The report argues that this long tail of broken workplaces is holding back the recovery and costing the nation billions in lost income and welfare benefits to those in work. The report, welcomed by Labour, the TUC, and EEF the employers’ organisation, calls on government to do more to narrow the divide between the rest and the best and to positively intervene to tackle problems at work. The evidence to the report demonstrates the urgent need to improve employment conditions and raise management standards as a means to boosting productivity and making work better for the UK’s 30m workers. The report is the product of a nine month inquiry on the world of work, involving research, interviews, discussion events around the country and opinion polling. It provides a comprehensive and up to date examination of the good and bad in Britain’s workplaces. It calls for a fresh approach to improving employment practices centred on the idea of ‘workplace citizenship’, with employees having a greater say, new employment rights and support for fair pay: including a right to request extra leave after five years of employment; rights to information on executive pay and low pay; extension of free childcare for working parents and ‘use it or lose it’ parental leave; reform of the ICE regulations to strengthen employee voice; and mandatory living wage contracts in all public procurement. October 2014

Outsourcing the cuts: pay and employment effects of contracting outContracting out public services in the UK is now well established. Nevertheless it is still a deeply divisive issue and the debate about outsourcing tends to generate more heat than light. What is particularly surprising given the scale and scope of contracting out is how little researched it is, not least in terms of how it affects employees. This report, commissioned by UNISON, seeks to help bridge that information gap by profiling and evaluating in some detail the impact of contracting out on employee pay, terms and conditions in five case-study contracts. The findings raise some important issues for politicians, policy makers, and contracting authorities and agencies, some of which should cause deep concern. In particular, the lack of information about terms and conditions, the impact of the cuts on outsourced low-paid workers, and the growth of the two-tier workforce (and the widening gap between them). It also raises wider questions about the impact of outsourcing on the quality of public services and the broader social effects (not least the public cost of failing to pay public-sector workers a decent wage).

Setting a fair pay standard: The government as a living wage employerAccording to David Cameron, the living wage is an idea “whose time has come”. Yet despite his backing central government departments have yet to become living wage employers. If the living wage was really a priority for central government then it is not unreasonable to ask why is it not itself a living wage employer? If government aims to promote the case for extending coverage should it not be leading by example? As the recent Buckle review on low pay has noted: “Central government should also learn from the experiments by local authorities to use the power of procurement to encourage more employers in the private sector to pay a Living Wage.” This research paper aims to show how much (or indeed, how little in the scheme of government spending) it would cost to pay all low paid workers in Whitehall (including those employed indirectly through public procurement) the living wage. By setting out the cost of scaling up living wage coverage the paper hopes to add to the increasing body of evidence about the living wage. It also adds to the debate about using living wages as a social policy instrument to tackle low pay. Introducing living wages clauses, for example, when contracting-out services could be a critical plank in a future government’s policies to reverse the trend of in-work poverty. The evidence is clear – the headline cost of paying all 31,413 Whitehall staff in the UK the living wage would be £18.3 million pa (including a contribution from the contractor). Even at a time of fiscal austerity this seems a small price for HM Treasury and a significant gain for the cleaners and other low paid staff who work for government departments.

Building the future: women in constructionWomen have made great advances in the world of work. The employment rate for women continues to rise and today there are more women in work than ever before (now accounting for just under half of the workforce). But, in construction – still one of the largest employers in the UK – progress has been abysmally slow. As the authors of this report point out, women account for only 11 per cent of the construction workforce and just 1 per cent of workers on site. Furthermore, the gender pay gap in construction is still wider than in other industries. In order to fill the skills gap the authors argue it will have to recruit and retain more women, and not just in support roles. This report picks up the challenge facing the sector and shows that change can happen. There are no easy answers, but all the authors are convinced that women must be central to the modernisation of the construction industries. 2014

Just deserts? Poverty and income inequality: can workplace democracy make a difference?Workplace democracy is not a panacea for the problems of low pay and poverty, but – as the evidence gathered in this report demonstrates – it can make a significant contribution to solving the problem. Indeed, as the report shows, the institutions and policies to support workplace democracy and tackle low pay that are commonplace in western Europe (and were once present in the UK) are now notable for their absence. The report does not argue for a return to the corporatist policies of the past or pretend that remedying the power imbalance in the workplace will be easy or free of conflict. Rather, it calls for more “inclusive” labour market policies, with stronger measures to promote workplace democracy (such as corporate governance reform), fair wages in the public-sector supply chain and skill-building programmes for the unemployed. Furthermore, the policies for tackling low pay and in-work poverty are presented as an integrated package and considered as part of the agenda for a more efficient and responsible form of capitalism.2013

Job Guarantee: a Right and Responsibility to WorkRt Hon Stephen Timms MP, Labour’s Shadow Minister for Work, sets out his vision for a new job guarantee scheme. Stephen criticises the Coalition Government’s record on employment and welfare, describing it as a failure. He is particularly critical of the Government’s seeming inability to tackle the issue of youth unemployment. He then puts forward an alternative approach and a set of recommendations for a reformed welfare system that centre on a job guarantee for young people. 2012

From the Poor Law to Welfare to Work: What have we learned from a century of anti-poverty policies?The authors successfully capture the story of how anti-poverty policies have evolved over a century and highlight the strengths and weaknesses of government interventions. They also provide a useful international comparison and discuss the drivers for change and the lessons learned. However, this report is much more than a historical commentary and critical assessment of what has been achieved. The evaluation of anti-poverty policies presented in this report is also intended to inform the current debate on how we eradicate poverty and reduce inequalities, which – as the authors show – have increased during recent periods of growth. The cornerstone of the report’s analysis and its challenge to today’s policy makers is the contention that redistribution (through welfare) is essential, but can only be part of the solution to combating poverty. The evidence from more than a century of reform is that lasting reductions in poverty and inequality also demand pre-distribution policies, notably in the labour market. The report is important and timely as governments seek to rebalance the relationship between the state and markets to achieve a fairer and more prosperous society. 2012

We Can’t Carry on Like This! Policy Solutions for the Under-pensioned: Perspectives from Key Players in the SectorThis timely publication edited by Rachel Reeves MP formed part of the Smith Institute’s ongoing programme of work on policies for a fairer society. With falling real wages for many, rising levels of personal debt, an ageing population and a bleak economic outlook, the number of people who are “under-pensioned” is set to increase. The contributors to this collection highlight the scale and scope of the problem and offer a range of practical policy solutions. It is the responsibility of today’s politicians and policy makers to ensure that our pensions system is fit for purpose and can meet the demands of tomorrow’s pensioners. We hope that this report pushes the debate forward so that the necessary long-term decisions can be made with cross-party support. 2011

Time to Cut the Gordian Knot – The case for consensus and reform of the UK’s employment relations systemThe Smith Institute wants to raise awareness and provoke debate on job quality and the world of work. This timely report on the parlous state of the UK’s employment relations system is at the heart of that conversation. It follows on from our reports on corporate social responsibility, fair pay, and employee engagement, and presents a challenge to government, employers, workers and trade unions. David Coats not only presents a clear and comprehensive critique of the employment relations regime in the UK, but offers a series of practical policy proposals. 2010

Advancing Opportunity: The future of good workThis monograph, the last in a series under the theme of “Advancing Opportunity”, explores the future of “good work”. There has been a lack of attention given to the quality of work, despite the fact that for most people work is where they spend most of their time, and for many others it is where they derive a fair proportion of their status, their dignity, their self-esteem, their identity and their sense of personal progress. The phrase “good work” is intended to offer a broad rubric to consider how the quality of working life can be improved and performance and productivity enhanced. This collection of essays sets out how good work chimes with the most pressing issues affecting our economy and our society – including the rise of the knowledge economy, globalisation and outsourcing, the difficulties of getting people off welfare and into work, and skills – and outlines how a new politics of “good work” can be constructed. Includes chapters from Rt Hon James Purnell MP, David Coats, Professor Duncan Gallie CBE FBA, John Philpott, James Reed, Brendan Barber, and Professor JR Shackleton. 2009

Trades Unions and GlobalisationA collection of essays considering the role of Trades Unions in the global economy, looking at the role that unions can play in preparing Britain’s workers for the effects of globalisation, and how international links between unions can offer an important force for progressive change across the world. Increased competition from abroad has heralded changing industrial patterns in Britain, with consequences for workers in each sector of the UK economy. The rise of off-shoring is just one example. In a global economy, the uncertainties that accompany the free movement of labour, and the fast pace at which a competitive advantage can be created and lost, have led many countries to move in the direction of increased protectionism. However, as the Chancellor has suggested, measures that seek to reverse or halt the free movement of goods and services, capital and labour are likely to impact disproportionately on our prosperity and growth. As this collection shows, a better approach may be to seek to involve workers and employers in meeting the challenges of a rapidly changing and changeable labour market, preparing workers for the jobs of the future and seeking to develop mechanisms for people to learn new skills at every stage of their lives. Includes chapters by Ian McCartney MP, Brendan Barber, Dave Prentis, Derek Simpson, John Monks, and Ed Balls MP. 2007

Public Policy

Public policy concerns the ideas and actions that government (at all levels) and the public sector more broadly undertakes. The actions are attempts to improve an aspect of public life. These actions take various forms and are undertaken by various government bodies and agencies. Such actions vary from passing or repealing a law, cutting or investing in a particular service, to less tangible actions such as calling for people to act in a certain way. Public policy involves consideration of a myriad of factors. These can include the impact on the economy, on individual behaviour, on equity, and on the law. Consideration is often made to the potential un/popularity of the policy. This is not only important for politicians but also the policy’s successful implementation by public servants. New policies also try to change a particular issue ideologically close to those implementing it. For example, a trade off may be made so the health budget receives increased funding whilst the defence budget is cut. Public policy has increasingly become evidenced based. With greater scrutiny and large sums of money involved, policy decisions have to be able to withstand close examination. In many cases government has chosen to scrutinise and evaluate a proposed policy by running a pilot scheme. Given the drive for efficiency and accountability public funded bodies and services have increasingly had to provide statistics on productivity and effectiveness. This complex dynamic between ideology, vested interests, electoral popularity and effectiveness impacts on every decision taken

Growing importance of Public Policy

The importance of public policy has increased as democracy and the state have expanded. Over recent years, the UK government’s expenditure has been around 40% of GDP (peaking during recessions and national crises before subsiding – at its highest it reached 61% in 1942 to 1944). As the public has demanded more action the state has played an ever larger role in attempting to cure societal ills. Not only has the state increased in size since the turn of the twentieth century but expectations have become greater. In recent years public services have come under pressure to deliver greater choice and freedom to citizens who have experienced higher standards of living and who are no longer willing to accept ‘one-size fits-all’ provision. This has meant greater efficiency savings and smarter public policy to deliver the kinds of services people expect. The complexities of public service delivery are only one aspect of the policy debate. With the importance of policy to the economy, business has looked to government to provide the right environment for growth so that they can compete with international firms. Such policy implications include government policy on education, health, rates of tax, labour flexibility, immigration and regulation to name but a few. Policy is also important for those campaigning on issues around poverty, international development, civil liberties, life chances and the environment. With so many different interests and such high expectations the importance of policy has never been greater or, indeed, more complex.

Independent Think Tank

Given the complexities of public policy formulation and implementation, government (and public agencies) have increasingly looked to independent research organisations to inform and improve their accountability, decision making and management. Research think tanks fill the gap between academia and the political world. By giving a platform to new thinking they offer government alternative approaches to policy formulation. They not only offer new approaches but actively try to influence decision making by engaging politicians. In parallel to this, public policy think tanks use the media to apply pressure on government and the opposition to support a particular proposal. These proposals for improved policy come out of research undertaken and events held. Research can vary in form. Often reports are drafted by individual researchers but publications can also consist of edited chapters on a particular theme or a report based on deliberation from an esteemed group of panellists. Effective research is evidenced based rather than purely ideological. Given the complexity of policy making, substantive evidence has to be in place to back up any recommendations. Publications are not only written by researchers, but can also be penned by academics, opinions formers, chief executives, decision makers, trade unionists, leaders from the third sector, civil servants, politicians, and journalists. In addition to research, events are held to debate and discuss issues. These can come in the form of roundtable discussions, seminars, conferences and lectures. By discussing issues with stakeholders it is hoped that a more rounded and nuanced approached to a policy can be found.

Nonpartisan Public Policy Think Tank

The number of nonpartisan think tanks has increased with the professionalisation of politics and growth of single issue campaigns. Most are not-for-profit organisations, independent, nonpartisan and free from government. They rely on grants, donations and contracts for funding. By being independent views and recommendations are more likely to be trusted. Independence is also important in engaging stakeholders. An open forum allows freedom to express new ideas and approaches to policy free of party dogma and politicking. Nonpartisan political think tanks offer new insights and thought leadership on public policy issues. Although think tank research is evidence based and independent there is often ideological bias in what is produced. In the world of policy and politics more broadly nothing can be said to be ideologically neutral. With so many influences, interests and beliefs policy cannot be value free. In reality policy has some normative foundation from which choices and trade offs are made. Research think tanks in the UK tend to have some form of political motivation. Broadly speaking they are either progressive or conservative so come at policy from a particular angle. Whilst this is true of some others look at a single policy areas such as the King’s Fund on health, the Institute for Fiscal Studies on economic analysis, and Chatham House on foreign affairs. Regardless of their particular agenda almost all are nonpartisan, with exceptions including the Fabian Society which is affiliated to the Labour Party or the Bow Group which has links with the Conservative Party.

Progressive Think Tanks

Progressive think tanks, like the Smith Institute, focus their work on issues around social justice, sustainability, equality and fairness. Progressive polices have traditionally looked at how we counter social exclusion to create a fairer more equal society. Progressives believe that by harnessing and shaping the power of the market the interests of the many can be best served. At the heart of progressive thought is the idea that individuals are social beings, and that through mutual endeavour social and economic problems can be overcome. Thus there is emphasis on collaboration rather than just individual action. Given the importance of cooperation issues around democracy and empowerment are stressed. There is also the belief that by being fairer society will also be more prosperous. By having fair provision of social goods the work force will be educated and healthy which will benefit the economy. A fairer society is not only good for the economy but also the individual whose capabilities can best be realised and sense of wellbeing increased. Progressives also stress the importance of sustainability and international development. Not only are these economic necessities they are moral issues as they allow opportunity to be extended to others – be it those in developing nations or to future generations. Modern centre-left thought is not merely about resource distribution but also about shaping institutions, policies and behaviour for the benefit of all. These norms shape the perspectives that progressive research takes. As such research often looks at issues such as health or education through the lens of social justice or equality

The Smith Institute

The Smith Institute is a leading nonpartisan public policy think tank which promotes progressive policies for a fairer society. We provide a high-level forum for new thinking and debate on public policy and politics. Through our research, reports, briefings, monographs, events, lectures, education, and our website, the Institute offers a platform for thought leadership on a wide range of topics. We are interested not only in innovation and new ideas but also in how to translate policy into practice. Founded in 1996 in memory of the late Rt. Hon. John Smith MP, the former leader of the Labour Party who had an all pervading passion for social justice, the Institute seeks to engage politicians, decision makers, practitioners, academia, opinion formers and commentators. The Institute’s activities are informed by a network of well known experts, policy makers, research fellows and patrons. Based in London, the Institute is a not for profit organisation which works in partnership with a range of public and private organisations, other nonpartisan political think tanks, foundations and charities. The Smith Institute has an excellent track record in influencing and shaping public policy, and extensive national and international contacts. Over the last decade we have held over 500 events and published more than 150 reports, with contributions from Prime Ministers and MPs to archbishops and chief executives. The Institute’s work strands include: economy and finance; government and politics; sustainability; business and third sector; local government, cities and regions; housing and regeneration; education and families; health and wellbeing; and EU and international.